Travelzoo Inc. said Thursday that its third-quarter net income jumped 62 percent, driven by the fastest revenue growth in five years.
The Web travel deal publisher said its net income rose to $5.9 million, or 36 cents per share, from $3.7 million, or 22 cents per share, a year ago.
Revenue increased 40 percent to $38.7 million from $27.7 million.
Analysts surveyed by FactSet expected earnings per share of 34 cents on revenue of $38.5 million, on average.
Travelzoo shares rose $2.21, or 7.2 percent, to $32.99 in morning trading. The stock is down 22 percent this year, and has plunged more than 60 percent in the past three months. The company's second-quarter results had fallen short of Wall Street expectations, and some analysts had worried about a slowdown in revenue growth in local deals in August from July.
In the third quarter, North American segment revenue rose 32 percent, while Europe revenue soared 65 percent.
"Our expansion into local deals focuses on growing both the top and the bottom line," said Chris Loughlin, chief executive of the New York company. "Operating margins improved, and operating income and earnings per share increased even more than revenues."
Total newsletter subscribers on Sept. 30, the end of the quarter, totaled 21.3 million, up 14 percent from a year ago and 3 percent from June 30.
